VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY . & HO PHUONG HONG THE EFFECTS OF PACKAGING ATTRIBUTES ON VIETNAMESE CONSUMERS PURCHASE INTENTION MASTER’S THESIS BUSINESS ADMINISTRATION Hanoi, 2019 VIETNAM NATIONAL UNIVERSITY, HANOI VIETNAM JAPAN UNIVERSITY . & HO PHUONG HONG THE EFFECTS OF PACKAGING ATTRIBUTES ON VIETNAMESE CONSUMERS PURCHASE INTENTION MAJOR: BUSINESS ADMINISTRATION Code: 60340102 Research Supervisors Assoc Prof Kodo Yokozawa Assoc Prof Pham Thi Lien Hanoi, 2019 ACKNOWLEDGEMENT First of all, I would like to I want to send my sincere thanks to my Vietnamese and Japanese professors, Associate Professor Pham Thi Lien and Associate Professor Kodo Yokozawa who constantly giving me advices and orientation during my thesis process Secondly, I would like to warmly thank to Hanh sensei, Matsui Sensei, Morita Sensei and Hino Sensei for giving me many meaningful recommendations helping me to improve my thesis writing in our Research Proposal Reports (on 25th December, 2018) Thirdly, I would like to thank to participants who took part in my online survey and gave me many valuable recommends to help me complete my questionnaire successfully Additionally, I would like send a big thank to Huong san who always support and remind us all procedure we need to to complete your thesis smoothly Last but not least, I would like to give a sincere thanks to my family and friends who always motivated spiritedly me when I felt struggling due to thesis i ABSTRACT Purpose – This study aims to measure Vietnamese instant oats packaging and its influences on Vietnamese consumer’s buying intention Design/ methodology/ approach – A quantitative research was conducted using an online survey to collect primary data for hypothesis testing The questionnaire was transferred successfully to 147 respondents Findings – The findings indicated the positive relationship between packaging elements (i.e graphic, structural and verbal attributes) and consumer purchase intention based on the literature reviews and data analysis discussed precisely in this research Additionally, the moderation role of involvement level to the interaction of visual elements and purchase intention was also proved in this paper Research limitation/ implication – the main limitation of this study is excluding other important factors impact purchase intention such as price, promotion, etc The findings provide knowledge related to consumer behavior for relevant companies to increase them to design an effective communication tool – package Practical implication - The findings of this study can be used by managers and marketers to create an effective packaging to ensure their products stand out among competitors Originality/ value – This study is one of the few quantitative researches measure the impacts of graphic, structural and verbal elements on purchase intention simultaneously Furthermore, it emphasizes the communication role graphic, structural and verbal attributes which has been ignore in previous studies Additionally, this study also indicated that involvement level positively strengthens the interaction between structural package design and purchase intention which did not quantitatively proved in previous studies Keywords Consumer’s purchase decision, packaging design, graphic elements, structural element, verbal elements, involvement level Paper type Research paper ii Table of Contents CHAPTER 1: INTRODUCTION 1.1 Research Motivation 1.2 Research Objectives 1.3 Research Scope 1.4 Research Structure CHAPTER 2: LITERATURE REVIEW 2.1 Consumer Behavior 2.1.1 Customer behavior definition 2.1.2 Purchase decision making processes 2.2 Packaging 10 2.2.1 Package and packaging design 10 2.2.2 The role of packaging 11 2.2.3 Packaging Elements 13 2.2.4 Product involvement 13 2.3 Research Gap and Research Questions 14 2.4 Theoretical framework and research hypotheses 16 2.4.1 Variable definition 16 2.4.2 Measurement of Variables 18 2.4.3 Integration of literature review and hypothesis 19 CHAPTER 3: METHODOLYGY AND RESEARCH DESIGN 25 3.1 Research approach 25 3.2 Research design 26 3.3 Data selection 28 3.3.1 Secondary Data 28 3.3.2 Primary Data 28 3.3.2.1 Sampling design 28 3.3.2.2 Data Collection and participants characteristics 29 3.3.2.3 Questionnaire and Experimental Design 30 3.4 Data Analysis 33 3.4.1 Reliability Analysis 33 3.4.2 Continuous improvement cycle 33 3.4.3 Survey data analysis 34 3.4.3.1 Exploratory factor analysis (EFA) 34 3.4.3.2 Confirmatory factor analysis (CFA) 36 3.4.3.3 Structural equation modelling (SEM) 37 3.4.3.4 Hypothesis testing by SEM 39 iii CHAPTER 4: DATA ANALYSIS RESULTS 40 4.1 Measurement Scale Test 40 4.1.1 Cronbach’s Alpha 40 4.1.2 Exploratory Factor Analysis (EFA) 41 4.1.3 Confirmatory Factor Analysis (CFA) 44 4.2 Research Model Test 47 4.2.1 Hypothesis testing without moderation of involvement level 47 4.2.2 Involvement Level effect testing by SEM 49 CHAPTER 5: CONCLUSION 52 5.1 Discussion of findings 52 5.2 Managerial implication 54 5.3 Practical implication 55 5.4 Limitation and further research 55 REFFERENCES 57 APPENDIXES 1: ONLINE SURVEY 63 APPENDIXES 2: Descriptive analysis 109 APPENDIXES 3: Cronbach’s Alpha 110 APPENDIXES 4: EFA 113 APPENDIXES 5: CFA 115 APPENDIXES 6: SEM 122 APPENDIXES 7: MODERATOR 128 iv LIST OF TABLES Table 1: Summarized literature review 14 Table 2: Measurement of variables 19 Table 1: Frequency of demographic information of respondents 30 Table 2: Study variable areas and corresponding section of the questionnaire 32 Table 3: Suggested procedure for improve measurement construct validity 34 Table 4: EFA requirement assumptions 35 Table 5: Model diagnostics in CFA 37 Table 6: Model fit indices 37 Table 1: Cronbach’s Alpha Results 40 Table 2: Removed variables 41 Table 3: Exploratory Factor Analysis Results 41 Table 4: Rotated components results 42 Table 5: The new latent variables 46 Table 6: Model fit indices 44 Table 7: Confirmatory Factor Analysis results 44 Table 8: Composite reliability and AVE results 45 Table 9: The model fit test of structural model 47 Table 10: Research model without moderator tested by SEM 47 Table 11: Hypotheses testing without moderator results 48 Table 12: Coding of variable computing 49 Table 13: Moderator effect model fit 50 Table 14: Hypothesis testing results 51 Z Z v LIST OF FIGURES Figure 1: The factors impact customer purchase intention Figure 2: The proposed research framework 16 Figure 1: The research process flow chart 27 Figure 2: Observed variables example 39 Figure 1: Research Hypothesis structural equation modeling 48 Figure 2: Moderator Effect 49 Z Z vi LIST OF ABBREVIATIONS VS: Visual Elements VB: Verbal Elements SEM: Structural Equation Modeling PI: Purchase intention IL: Involvement Level vii Model Default model Saturated model Independence model AIC 612.959 812.000 2786.820 BCC 646.172 1013.265 2800.700 BIC 813.318 2026.116 2870.552 CAIC 880.318 2432.116 2898.552 ECVI Model Default model Saturated model Independence model ECVI 4.198 5.562 19.088 LO 90 3.829 5.562 17.977 HI 90 4.622 5.562 20.250 MECVI 4.426 6.940 19.183 HOELTER Model Default model Independence model HOELTER 05 117 23 HOELTER 01 123 24 Estimates (Group number - Default model) Scalar Estimates (Group number - Default model) Maximum Likelihood Estimates Regression Weights: (Group number - Default model) GR3 GR4 GR2 GR10 GR7 GR6 GR9 GR1 GR5 GR8 VB6 VB7 VB8 VB4 < < < < < < < < < < < < < < - GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL VERBAL Estimate 1.000 870 852 739 864 861 815 701 712 711 1.000 946 1.096 979 S.E C.R P 073 078 068 076 083 083 070 076 095 11.975 10.887 10.826 11.335 10.336 9.808 9.996 9.342 7.484 *** *** *** *** *** *** *** *** *** 133 147 133 7.087 7.479 7.353 *** *** *** Label 117 VB5 VB1 PI2 PI1 PI4 PI3 IL3 IL2 IL1 IL4 ST4 ST1 ST3 ST2 < < < < < < < < < < < < < < - VERBAL VERBAL INTENTION INTENTION INTENTION INTENTION INVOLVEMENT INVOLVEMENT INVOLVEMENT INVOLVEMENT SRUCTURE SRUCTURE SRUCTURE SRUCTURE Estimate 936 849 1.000 1.056 893 925 1.000 744 626 747 1.000 766 724 929 S.E .130 128 C.R 7.203 6.611 P *** *** 043 042 039 24.423 21.046 23.856 *** *** *** 082 081 092 9.062 7.755 8.083 *** *** *** 144 117 149 5.319 6.181 6.249 *** *** *** Label Standardized Regression Weights: (Group number - Default model) GR3 GR4 GR2 GR10 GR7 GR6 GR9 GR1 GR5 GR8 VB6 VB7 VB8 VB4 VB5 VB1 PI2 PI1 PI4 PI3 IL3 IL2 < < < < < < < < < < < < < < < < < < < < < < - GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL VERBAL VERBAL VERBAL INTENTION INTENTION INTENTION INTENTION INVOLVEMENT INVOLVEMENT Estimate 843 814 765 762 786 738 711 721 686 579 701 668 711 697 680 618 955 940 907 935 859 755 118 IL1 IL4 ST4 ST1 ST3 ST2 < < < < < < - INVOLVEMENT INVOLVEMENT SRUCTURE SRUCTURE SRUCTURE SRUCTURE Estimate 648 673 712 528 635 644 Covariances: (Group number - Default model) GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL INTENTION INTENTION INVOLVEMENT e7 < > < > < > < > < > < > < > < > < > < > < > VERBAL INTENTION INVOLVEMENT SRUCTURE INTENTION INVOLVEMENT SRUCTURE INVOLVEMENT SRUCTURE SRUCTURE e10 Estimate 120 647 -.003 045 220 -.023 029 230 532 092 278 S.E .043 133 078 056 069 043 031 124 107 059 065 C.R 2.756 4.876 -.040 801 3.206 -.544 948 1.864 4.967 1.553 4.273 P 006 *** 968 423 001 587 343 062 *** 121 *** Label Correlations: (Group number - Default model) GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL INTENTION INTENTION INVOLVEMENT e7 < > < > < > < > < > < > < > < > < > < > < > VERBAL INTENTION INVOLVEMENT SRUCTURE INTENTION INVOLVEMENT SRUCTURE INVOLVEMENT SRUCTURE SRUCTURE e10 Estimate 277 486 -.004 081 320 -.053 101 173 603 165 410 Variances: (Group number - Default model) GRAPHIC Estimate 838 S.E .135 C.R 6.199 P *** Label 119 VERBAL INTENTION INVOLVEMENT SRUCTURE e1 e2 e3 e4 e5 e6 e7 e8 e9 e10 e11 e12 e13 e14 e15 e16 e17 e18 e19 e20 e21 e22 e23 e24 e25 e26 e27 e28 Estimate 224 2.113 840 369 342 323 432 331 388 520 544 381 477 840 231 248 263 227 228 260 203 308 362 258 298 351 456 567 359 558 287 448 S.E .050 271 144 086 049 044 057 043 052 067 069 049 060 102 033 034 038 032 032 035 037 049 050 040 073 056 062 079 061 074 042 067 C.R 4.502 7.783 5.847 4.288 6.978 7.291 7.647 7.663 7.516 7.783 7.888 7.856 7.978 8.209 6.975 7.241 6.889 7.016 7.149 7.546 5.492 6.300 7.204 6.494 4.076 6.292 7.398 7.218 5.926 7.575 6.834 6.742 P *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Label Squared Multiple Correlations: (Group number - Default model) ST2 ST3 ST1 ST4 Estimate 415 403 279 507 120 IL4 IL1 IL2 IL3 PI3 PI4 PI1 PI2 VB1 VB5 VB4 VB8 VB7 VB6 GR8 GR5 GR1 GR9 GR6 GR7 GR10 GR2 GR4 GR3 Estimate 452 419 570 738 875 823 884 912 382 463 485 505 446 492 335 471 520 506 545 617 580 585 663 710 121 APPENDIXES 6: SEM Computation of degrees of freedom (Default model) Number of distinct sample moments: Number of distinct parameters to be estimated: Degrees of freedom (300 - 55): 300 55 245 Result (Default model) Minimum was achieved Chi-square = 388.004 Degrees of freedom = 245 Probability level = 000 Model Fit Summary CMIN Model Default model Saturated model Independence model NPAR 55 300 24 CMIN 388.004 000 2457.623 DF 245 276 P 000 CMIN/DF 1.584 000 8.904 RMR, GFI Model Default model Saturated model Independence model RMR 060 000 434 GFI 831 1.000 267 AGFI 793 PGFI 678 203 245 NFI Delta1 842 1.000 000 RFI rho1 822 IFI Delta2 935 1.000 000 TLI rho2 926 Baseline Comparisons Model Default model Saturated model Independence model 000 000 CFI 934 1.000 000 Parsimony-Adjusted Measures Model Default model PRATIO 888 PNFI 748 PCFI 829 122 Model Saturated model Independence model PRATIO 000 1.000 PNFI 000 000 PCFI 000 000 NCP 143.004 000 2181.623 LO 90 93.328 000 2026.825 NCP Model Default model Saturated model Independence model HI 90 200.611 000 2343.813 FMIN Model Default model Saturated model Independence model FMIN 2.658 000 16.833 F0 979 000 14.943 LO 90 639 000 13.882 HI 90 1.374 000 16.054 RMSEA Model Default model Independence model RMSEA 063 233 LO 90 051 224 HI 90 075 241 PCLOSE 037 000 AIC Model Default model Saturated model Independence model AIC 498.004 600.000 2505.623 BCC 520.732 723.967 2515.540 BIC 662.478 1497.130 2577.393 CAIC 717.478 1797.130 2601.393 ECVI Model Default model Saturated model Independence model ECVI 3.411 4.110 17.162 LO 90 3.071 4.110 16.102 HI 90 3.806 4.110 18.273 MECVI 3.567 4.959 17.230 HOELTER 123 Model Default model Independence model HOELTER 05 107 19 HOELTER 01 113 20 Scalar Estimates (Group number - Default model) Maximum Likelihood Estimates Regression Weights: (Group number - Default model) INTENTION INTENTION INTENTION GR3 GR4 GR2 GR10 GR7 GR6 GR9 GR1 GR5 GR8 VB6 VB7 VB8 VB4 VB5 VB1 PI2 PI1 PI4 PI3 ST4 ST1 ST3 ST2 < < < < < < < < < < < < < < < < < < < < < < < < < < < - GRAPHIC VERBAL STRUCTURE GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL VERBAL VERBAL VERBAL INTENTION INTENTION INTENTION INTENTION STRUCTURE STRUCTURE STRUCTURE STRUCTURE Estimate 634 470 1.332 1.000 870 852 739 863 862 816 701 712 712 1.000 944 1.094 973 928 846 1.000 1.057 893 925 1.000 770 726 932 S.E .115 227 221 C.R 5.509 2.072 6.025 P *** 038 *** 073 078 068 076 083 083 070 076 095 11.979 10.885 10.825 11.318 10.339 9.813 9.992 9.326 7.496 *** *** *** *** *** *** *** *** *** 133 146 132 129 128 7.118 7.509 7.358 7.189 6.626 *** *** *** *** *** 043 042 039 24.469 21.037 23.765 *** *** *** 145 118 149 5.325 6.168 6.242 *** *** *** Label 124 Standardized Regression Weights: (Group number - Default model) INTENTION INTENTION INTENTION GR3 GR4 GR2 GR10 GR7 GR6 GR9 GR1 GR5 GR8 VB6 VB7 VB8 VB4 VB5 VB1 PI2 PI1 PI4 PI3 ST4 ST1 ST3 ST2 < < < < < < < < < < < < < < < < < < < < < < < < < < < - GRAPHIC VERBAL STRUCTURE GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC GRAPHIC VERBAL VERBAL VERBAL VERBAL VERBAL VERBAL INTENTION INTENTION INTENTION INTENTION STRUCTURE STRUCTURE STRUCTURE STRUCTURE Estimate 399 153 555 842 814 765 762 785 738 712 721 686 580 704 669 712 695 677 618 955 941 908 935 710 530 634 645 Covariances: (Group number - Default model) GRAPHIC GRAPHIC VERBAL e7 < > < > < > < > VERBAL STRUCTURE STRUCTURE e10 Estimate 120 045 029 277 S.E .044 056 031 065 C.R 2.758 802 940 4.263 P 006 423 347 *** Label Correlations: (Group number - Default model) 125 GRAPHIC GRAPHIC VERBAL e7 < > < > < > < > VERBAL STRUCTURE STRUCTURE e10 Estimate 277 081 100 410 Variances: (Group number - Default model) GRAPHIC VERBAL STRUCTURE e29 e1 e2 e3 e4 e5 e6 e7 e8 e9 e10 e11 e12 e13 e14 e15 e16 e17 e18 e19 e20 e25 e26 e27 e28 Estimate 838 225 367 891 343 323 432 331 389 520 544 381 478 839 229 247 263 228 230 260 204 305 361 260 361 557 287 448 S.E .135 050 086 150 049 044 056 043 052 067 069 049 060 102 033 034 038 033 032 035 037 049 050 040 061 074 042 067 C.R 6.196 4.522 4.272 5.929 6.981 7.286 7.646 7.662 7.520 7.781 7.886 7.856 7.980 8.207 6.950 7.229 6.877 7.027 7.173 7.544 5.507 6.264 7.198 6.508 5.950 7.564 6.830 6.730 P *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** Label 126 Squared Multiple Correlations: (Group number - Default model) INTENTION ST2 ST3 ST1 ST4 PI3 PI4 PI1 PI2 VB1 VB5 VB4 VB8 VB7 VB6 GR8 GR5 GR1 GR9 GR6 GR7 GR10 GR2 GR4 GR3 Estimate 578 416 403 281 504 874 824 886 912 382 458 483 506 448 495 336 470 520 507 545 616 581 585 663 710 127 APPENDIXES 7: MODERATOR Notes for Model (Default model) Computation of degrees of freedom (Default model) Number of distinct sample moments: Number of distinct parameters to be estimated: Degrees of freedom (36 - 22): 36 22 14 Result (Default model) Minimum was achieved Chi-square = 25.536 Degrees of freedom = 14 Probability level = 030 Model Fit Summary CMIN Model Default model Saturated model Independence model NPAR 22 36 CMIN 25.536 000 138.533 DF 14 28 P 030 CMIN/DF 1.824 000 4.948 RMR, GFI Model Default model Saturated model Independence model RMR 069 000 151 GFI 960 1.000 828 AGFI 897 PGFI 373 778 644 NFI Delta1 816 1.000 000 RFI rho1 631 IFI Delta2 907 1.000 000 TLI rho2 791 Baseline Comparisons Model Default model Saturated model Independence model 000 000 CFI 896 1.000 000 Parsimony-Adjusted Measures 128 Model Default model Saturated model Independence model PRATIO 500 000 1.000 PNFI 408 000 000 PCFI 448 000 000 NCP 11.536 000 110.533 LO 90 1.114 000 77.518 NCP Model Default model Saturated model Independence model HI 90 29.755 000 151.081 FMIN Model Default model Saturated model Independence model FMIN 175 000 949 F0 079 000 757 LO 90 008 000 531 HI 90 204 000 1.035 RMSEA Model Default model Independence model RMSEA 075 164 LO 90 023 138 AIC 69.536 72.000 154.533 BCC 72.426 76.730 155.584 HI 90 121 192 PCLOSE 171 000 AIC Model Default model Saturated model Independence model BIC 135.325 179.656 178.457 CAIC 157.325 215.656 186.457 ECVI Model Default model Saturated model Independence model ECVI 476 493 1.058 LO 90 405 493 832 HI 90 601 493 1.336 MECVI 496 526 1.066 129 HOELTER Model Default model Independence model HOELTER 05 136 44 HOELTER 01 167 51 Scalar Estimates (Group number - Default model) Maximum Likelihood Estimates Regression Weights: (Group number - Default model) ZMPI ZMPI ZMPI ZMPI ZMPI < < < < < - ZMGR ZMST ZMVB ZMIL ZMSTxZIL Estimate 409 439 186 109 115 S.E .060 058 060 058 057 C.R 6.843 7.505 3.106 1.871 2.007 P *** *** 002 061 045 Label Standardized Regression Weights: (Group number - Default model) ZMPI ZMPI ZMPI ZMPI ZMPI < < < < < - ZMGR ZMST ZMVB ZMIL ZMSTxZIL Estimate 419 449 191 112 120 Covariances: (Group number - Default model) ZMGR ZMIL ZMGR ZMIL ZMST ZMIL ZMVB ZMVB ZMGR < > < > < > < > < > < > < > < > < > ZMIL ZMGRxZIL ZMGRxZIL ZMSTxZIL ZMSTxZIL ZMVBxZIL ZMIL ZMVBxZIL ZMVB Estimate 014 -.132 -.045 -.047 039 123 -.057 -.014 215 S.E .082 088 086 083 084 078 082 076 084 C.R .166 -1.507 -.524 -.573 462 1.572 -.696 -.187 2.554 P 868 132 600 567 644 116 486 852 011 Label 130 Correlations: (Group number - Default model) ZMGR ZMIL ZMGR ZMIL ZMST ZMIL ZMVB ZMVB ZMGR < > < > < > < > < > < > < > < > < > ZMIL ZMGRxZIL ZMGRxZIL ZMSTxZIL ZMSTxZIL ZMVBxZIL ZMIL ZMVBxZIL ZMVB Estimate 014 -.124 -.042 -.047 038 130 -.057 -.015 216 Variances: (Group number - Default model) ZMGR ZMST ZMVB ZMIL ZMSTxZIL ZMGRxZIL ZMVBxZIL e1 Estimate 994 993 994 1.003 1.033 1.124 887 495 S.E .116 116 116 117 121 132 104 058 C.R 8.545 8.544 8.544 8.547 8.544 8.544 8.544 8.544 P *** *** *** *** *** *** *** *** Label Squared Multiple Correlations: (Group number - Default model) ZMPI Estimate 477 131 ... concentrates on the “what” of the research topic rather than the “why” (qualitative approach) of the research topic In the other words, it focuses on describing the nature of a phenomenon instead of explaining... interpreted The Font used on the product attracts attention from distance The picture quality of the product packaging draws my attention The picture of the product packaging reflects the fact that... 70% of Vietnamese buyers consider the ingredients content of the food and beverage they consumed In this sense, as one of the healthiest grains on earth, oats meal became a popular choice of Vietnamese